Development And Reform Commission: Stop Storing Cotton And Push Forward Market Reform Of Price System

The NDRC held a news conference on "cotton target price reform pilot and market regulation". Wen Bu Gao, deputy director of the national development and Reform Commission, said at the press conference that according to the plan of the State Council, Xinjiang cotton target price reform pilot project was launched in 2014. The implementation of the target price system is a major mechanism innovation to improve China's agricultural product prices and market regulation mechanism.

Zhou Wangjun, deputy director of the price department of the NDRC, introduced the mechanism of target price. The most fundamental thing is that the price of cotton should be determined by the market.

Zhou Wangjun said, "in the process, the NDRC determines a target price according to the farmers' planting costs plus basic income. The target price of cotton in Xinjiang this year is 19800 yuan per ton. The domestic cotton price is 14000 yuan, the difference between 19800 and 14000 is 5800 yuan a ton, that is, the amount that the NDRC should subsidize to farmers this year. Of course, the specific market price should be calculated according to the average price of cotton sold in September, October and November in three months. But subsidies are not issued every year, when the market price is lower than the target price, the difference is issued to farmers, when the market price is higher than the target price, the state does not grant subsidies. This is an important difference between the target price system and the previous temporary purchase and storage policy.

　　 Development and Reform Commission Liu Xiaonan, deputy director of the economic and trade department, said that in the coming period, the cotton and cotton prices will remain stable within a reasonable price range, and the NDRC will consider the following arrangements in principle. Measures :

First, provisional. Reserve cotton Put in. In order to make room for the acquisition, sale and processing of new cotton, after the beginning of the new year in September, the storage of cotton was stopped. Before March, it is the peak period for cotton processing and acquisition. After the acquisition process is basically over, we will reconsider the progress of cotton purchase, processing and sales in the next step. If the domestic market is in short supply and the price is rising rapidly, we will put some cotton reserves in line with the domestic cotton sales progress according to the principle of not pressing the market to meet the needs of the market.

Two, we should arrange cotton imports properly. Next year, we will do a good job in the cotton import related work according to the domestic cotton supply and demand situation. We will not issue additional import quotas in addition to the 894 thousand tons tariff import quota promised to join WTO, meet the needs of textile and cotton blending, and guide domestic textile enterprises to make more use of domestic cotton.